Company Reports Q4 Revenue of $115.62M, Beating Consensus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy KRT?
Reports Q4 revenue $115.62M, consensus $113.95M. "We finished 2025 with a strong fourth quarter, demonstrating the strength and resilience of our business model and our ability to continue to drive profitable growth against an uncertain macroeconomic backdrop. We again achieved double-digit volume growth and our pricing turned positive for the first time since the first quarter of 2023," said Alan Yu, Chief Executive Officer. "Our strategy to diversify sourcing is proving successful, enabling us to continue to strengthen our global supply chain and maintain a 34 percent gross margin, despite significantly higher tariffs and duty costs."
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Analyst Views on KRT
Wall Street analysts forecast KRT stock price to rise
3 Analyst Rating
1 Buy
1 Hold
1 Sell
Hold
Current: 27.920
Low
22.00
Averages
28.50
High
35.00
Current: 27.920
Low
22.00
Averages
28.50
High
35.00
About KRT
Karat Packaging Inc. is a specialty distributor and manufacturer of a range of disposable foodservice products and related items, primarily used by national and regional restaurants and in foodservice settings across the United States. The Company classifies its customers into four categories. Distributors include national and regional distributors across the United States that purchase their products and provide a channel to offer their products to restaurants, offices, schools, government entities and other end users. National and regional chains typically include fast casual, fast-food restaurants and supermarket chains with locations across multiple states to which they supply specified products. Retail primarily includes regional bubble tea shops and frozen yogurt shops that often purchase their specialty beverage ingredients and related items. E-commerce/Online includes small businesses, often with only one or two locations, as well as customers who purchase for personal use.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Price Surge: Following the sales growth announcement, Karat's stock price soared by 17.9% to $3.99 per share, resulting in a market capitalization of $448 million, reflecting investor confidence in the company's future growth potential.
- Diversified Sourcing Strategy: The company is effectively navigating the evolving tariff landscape by diversifying its sourcing to South America and the U.S., a strategy that not only mitigates operational risks but also supports future growth prospects.
- Demand for Eco-Friendly Products: Karat's eco-friendly packaging offerings are in high demand, and the company continues to innovate with a steady stream of new products, enhancing its appeal in a competitive market, while its nearly 7% dividend yield provides investors with stable returns.
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- Positive Stock Reaction: Following the sales growth announcement, Karat's shares surged by 17.9% as of 1:35 p.m. ET, reflecting investor optimism about the company's future prospects and bolstering market confidence.
- Diversified Supply Chain Strategy: The company is actively expanding its supply chain beyond Asia to include South America and the U.S. to navigate the evolving tariff landscape, a strategy that helps reduce costs and enhance competitiveness.
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Karat Packaging (KRT) Q4 2025 Earnings Transcript
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Karat Packaging Reports Nearly 14% Sales Growth in Q4
- Significant Sales Growth: Karat Packaging reported a 13.7% year-over-year sales increase in Q4, indicating strong market performance despite an unpredictable macroeconomic environment, with expectations of up to 10% revenue growth in Q1 compared to the prior year, further solidifying its market position.
- Stock Price Surge: Following the sales growth announcement, Karat's stock price soared by 17.9% to $3.99 per share, resulting in a market capitalization of $448 million, reflecting investor confidence in the company's future growth potential.
- Diversified Sourcing Strategy: The company is effectively navigating the evolving tariff landscape by diversifying its sourcing to South America and the U.S., a strategy that not only mitigates operational risks but also supports future growth prospects.
- Demand for Eco-Friendly Products: Karat's eco-friendly packaging offerings are in high demand, and the company continues to innovate with a steady stream of new products, enhancing its appeal in a competitive market, while its nearly 7% dividend yield provides investors with stable returns.
See More
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- Significant Sales Growth: Karat Packaging reported a 13.7% year-over-year sales increase in Q4, indicating strong market performance despite challenging tariff conditions, with management projecting up to a 10% revenue increase in Q1 compared to the prior year.
- Positive Stock Reaction: Following the sales growth announcement, Karat's shares surged by 17.9% as of 1:35 p.m. ET, reflecting investor optimism about the company's future prospects and bolstering market confidence.
- Diversified Supply Chain Strategy: The company is actively expanding its supply chain beyond Asia to include South America and the U.S. to navigate the evolving tariff landscape, a strategy that helps reduce costs and enhance competitiveness.
- Attractive Dividend Yield: Even after the stock price increase, Karat continues to offer a nearly 7% dividend yield, maintaining its appeal among investors, particularly in the current uncertain macroeconomic environment.
See More
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- Silvaco Group Leads Gains: Silvaco Group's shares surged by about 35.6%, becoming a market highlight, reflecting positive signals in terms of technological innovation or market demand, which may attract more investor attention.
- AXTI Shows Strong Performance: AXTI's stock increased by approximately 8.4%, indicating robust performance in the semiconductor space, potentially linked to growing product demand or market share expansion.
- Optimistic Industry Outlook: The strong rebound in semiconductor stocks enhances market expectations for future technological developments, potentially creating more investment opportunities and growth potential for related companies.
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- Sales Exceed Expectations: The company achieved quarterly sales of $123.515 million, exceeding the analyst consensus of $122.783 million, demonstrating sustained strong market demand that drives overall performance.
- Stock Rating Upgrade: Benchmark upgraded El Pollo Loco's stock from Hold to Buy, reflecting a positive outlook on the company's future growth potential, which may attract more investor interest.
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- Significant Sales Growth: Karat Packaging reported net sales of $115.6 million in Q4 2025, reflecting a 13.7% increase from the previous year, driven by $8.2 million in volume growth and a $6.3 million positive impact from pricing and product mix, showcasing the company's robust market performance.
- Stable Gross Margin: Despite facing higher tariffs and costs, the gross margin for Q4 2025 stood at 34%, down from 39.2% year-over-year, yet the company maintained strong profitability with net income rising 22.8% to $7.2 million, indicating resilience in its business model.
- Growth in Eco-Friendly Products: Sales of eco-friendly products accounted for 37.3% of total revenue in Q4 2025, up from 34.5% in the same quarter of 2024, highlighting the company's expanding market share in sustainable products, which is driving overall revenue growth.
- Optimistic Future Outlook: The company anticipates an 8% to 10% increase in net sales for Q1 2026 and expects gross margins to range between 34% and 36%, reflecting management's confidence in future market opportunities, particularly driven by new product categories like paper bags.
See More
Karat Packaging (KRT) Q4 2025 Earnings Transcript
See More
